Sophisticated Investors Should Avoid: Viveve Medical Inc. (VIVE), Golden Minerals Company (AUMN)

Viveve Medical Inc. (NASDAQ: VIVE) shares are -42.12% down in the year-to-date (YTD) period and have moved 2.72% or $0.02 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +38.86% lower. Comparatively, the stock is -65.11% down YTD and 13.95% over the trailing 3-month period. If we look at the shorter duration, its week performance is 26.07% and 26.79% over the month.

Analyst Recommendations

On July 23, 2019, Raymond James recommended the VIVE stock is a Mkt Perform, while earlier, Stifel had Downgrade the stock as a Hold on July 23, 2019. 1 analysts offering the recommendations for the stock have a consensus rating of 1.00 to suggest that the VIVE stock is a “Strong Buy. 0 of the 1 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 1 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $0.73. The forecasts give the Viveve Medical Inc. stock a price target range of $1.85 on the higher side while at least one analyst think the stock could plunge to a low of $1.85. The two limits represent an upside potential of 60.54% or 60.54%.

Earnings Forecast

Analysts estimate the earnings to increase 3.40% in the current quarter to -$0.53, up from the -$13.51 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$2.41, down -26.60% from -$34.39 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.49 and -$0.49. Wall Street estimates earnings per share to be at an average of -$1 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 4 over the last 12 months, while SEC filings reveal that there have been 18 insider sales over the same period. Insiders have purchases 131,600 shares while those sold by company executives and officers stand at 237,684. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

Golden Minerals Company (AMEX:AUMN), on the other hand, is trading around $0.43 with a market cap of $65.65M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting -$0.08 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Golden Minerals Company (AUMN) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

AUMN’s operating margin was negative on the trailing 12 months basis, remaining steady at -96.00%, while the operating expenses over the recent quarter were at $3.5 million. This represented a -185.54% of the company’s total revenues which amounted $1.22 million. With this in place, we can see that the company’s diluted EPS declined -$0.02 on the year-over-year period, shrinking to -$0.03 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $11.41 million from $10.23 million over the previous quarter. The cash flow from operating activities totaled -$6.11 million, significantly lower than the -$1.78 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$6.12 million.

Insider activity

Insiders have transacted a total of 6 times at Golden Minerals Company over the last 6 months, with insider purchases undertaken 6 times and accounting for 132,998 shares. Insider sales totaled 0 shares over the same period, with these deals completed in 0 transactions. Looking at these numbers, we realize that net purchases over that period are 6.0 shares. Insiders now hold a total of 2.54M shares after the latest sales, with 5.50% net shares purchased.

Major holders

Insiders own 0.60% of the company shares, while shares held by institutions stand at 31.40% with a share float percentage of 105.60M. Investors are also buoyed by the number of investors in a company, with Golden Minerals Company having a total of 34 institutions that hold shares in the company. The top two institutional holders are Renaissance Technologies, LLC with over 1.78 million shares worth more than $0.76 million. As of Jun 29, 2020, Renaissance Technologies, LLC held 1.19% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 0.92 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $0.39 million and represent 0.62% of shares outstanding.